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Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: TRF

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Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: TRF = 4.10%; RPM 4.60%; and b - 1.40. Based on the CAPM approach, what is the cost of equity from retained earnings? a 10.10% b.12.18% c. 10.34% d. 8.70% e. 10.54%

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